Market Wrap: Cryptos Decline Amid Bearish Sentiment

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MARKET WRAP: Bitcoin $BTC and other cryptos traded lower on Tuesday. Bearish sentiment persists, and some analysts expect lower returns.

As bitcoin's market size increases, more capital is required to move market prices. That can result in diminishing returns over time as the crypto asset matures.was likely the genesis point of the prevailing bear market trend," Glassnode wrote in a blog post.From a macro perspective, a long period of accommodative monetary policy underpinned a strong rally in speculative assets, such as stocks and cryptos, over the past few years.

Currently, global investors are grappling with tighter monetary policy amid high inflation and slowing economic growth. That could produce"If inflation stays high for many years, both history and today's high starting valuations suggest it will be very difficult to generate positive real returns in most traditional financial asset classes," Deutsche Bank wrote in a research note."Nominal returns will also likely notably underperform their long-term trend.

 

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